"There will be many conversations, a decision isn't final, we've got to make sure they can tick every box and the community's happy with this," he said.

"There is also a greater benefit to the state and a flow-on effect to the mining industry which would no longer have to purchase its TAN (Technical Ammonium Nitrate) from interstate as is the case at the moment."

Mining demands

Mr Koutsantonis says there are TAN manufacturing plants in all mining states apart from SA.

"The truth is that we're the only mining state without an ammonium nitrate plant. We need ammonium nitrate for mining, it's a $350 million investment into Whyalla. It's the first cog in the wheel to make sure we have the supplies needed for the mining boom," he said.

A leaked cabinet submission acknowledged the plan could lead to a community backlash and recommended it be given Major Development Status, which would bypass the council in the approvals process.

But Mr Koutsantonis says he wants council to have authority over the planned development.

"I want the council to consider this fairly. This is not guaranteed to happen," he said.

"I want the local community to think about it. I want the silent majority to stand up and make sure they look at this proposal openly and fairly.

"Now if they decide in the end they don't want it then we could lose the investment."

Local Labor MP Lyn Breuer says she has some issues with the project but is yet to make up her mind.

"Look I have some major concerns about the nature of the plant and the proposed siting of the plant however opposing that is the fact that it would create jobs for our community, there would be a substantial benefit for our community if it would happen, so at this stage I'm keeping a very open mind about it," she said.

Marine life

Greens MP Mark Parnell fears an explosives plant could spell the end of the giant cuttlefish population.

"They're already at risk from a range of sources including industrial development. Putting more and more development right on the doorstep of the breeding grounds makes no sense at all," he said.

"The Government, BHP Billiton and the Indian company that's proposing to build the explosives plant need to find a better location that isn't as environmentally sensitive."

But Mr Koutsantonis has given an assurance.

"I don't want to see the cuttlefish harmed, I don't want to see the degradation of the natural beauty, environment of that area but I also want to see Whyalla survive into the future," he said.

Opposition mining spokesman Mitch Williams says Port Bonython is not an appropriate location for the plant for a number of reasons.

"Why would you propose to build something like this, which has an inherent high-risk associated with it, in such a sensitive area where there are other proposals for industries and things which are absolutely risk-free?" he said.

"[It's] very close to where BHP Billiton propose to build a major desalination plant and also very close to where there's already approvals for a major diesel fuels storage and there's also an existing liquids plant associated with the gas fields in South Australia.

"The whole of the Olympic Dam expansion may well depend on the desalination plant."